The City of London's planning and transportation committee yesterday resolved to grant permission to the Lai Sun Development Company for the office building at 100 Leadenhall.
Dubbed the Cheesegrater 2, the building will reach a height of 263.4 metres and will be the third tallest structure in the Square Mile.
Plans for 100 Leadenhall include more than 102,000 square metres of office space, 996 square metres of ground floor retail, and a public viewing gallery on the top two floors.
St Paul’s Cathedral objected to the proposal on the grounds of its impact on the view of the London landmark from Fleet Street and Ludgate Hill.
In the officer's report for the commitee, City of London chief planning officer Annie Hampson conceded that the building would lead to "minor diminishment to the view and setting of St Paul’s Cathedral from Fleet Street".
However, she added: "The public benefits of the proposal outweigh that less than substantial harm to the significance of the listed building."
Charity Historic Royal Palaces, which owns the Tower of London, also objected to the scheme on the grounds of its impact on the Tower of London World Heritage Site.
The Mayor of London, however, said he supported the scheme "in strategic planning terms", according to the report.
The building’s distinctive design, including its angled façade that "slopes back" from the Leadenhall Street frontage, is intended to mitigate the tower’s impact on views of St Paul's Cathedral and the Tower of London, the report said.
Hampson advised members that the "design approach is dynamic and of the highest quality".
She concluded: "I am of the view that the proposal accords with the development plan as a whole, and that other material considerations and local finance considerations indicate that planning permission should be granted."
The development would provide a mayoral community infrastructure levy (CIL) contribution of £12.2 million and City of London CIL and planning obligation payments of £8.6 million, the report said.
Chris Hayward, chairman of the City of London planning and transportation committee, said: "This development demonstrates the City’s distinctive ability to house the old and new side by side, while becoming more accessible to creative workers and members of the public."